Where could tax exempt interest on Form 1040 come from?

[czrunner]

My Form 1040 and 1040 Worksheet show an entry for Tax-exempt Interest on line 2a.  There is no indication of any tax-exempt interest in Schedule B, and all 1099-INT forms have entries only in Box 1.  Where could the tax exempt interest come from?  Since the item is not taxable, does it even matter that it is there or should I override it with zero?

[Zbucklyo · Accepted solution]

Do you have any 1099-divs with entries in Box 11?  That is tax-exempt interest as well, even if reported as a dividend.  Also, it does matter unless you live in a state with no income tax, because unless the interest comes from your resident state, it is taxable there.

[czrunner]

Thank you very much for the super fast and helpful response. The tax system is so confusing that it is difficult to check anything.  I hope that I can trust TurboTax to generate a correct tax return based on my entries and blind copies from received form.  I appreciate your help!

[VolvoGirl]

Can come from a K-1.

[Zbucklyo]

You do have the download version, which allows you to go into your tax return in forms mode, and look at forms and schedules, etc. in great detail.